Donaldson Company Inc., Gurgaon V. JCIT (OSD), International Taxation, Gurgaon

ITA 527/DEL/2018

AI Insights

The case involves Donaldson Company Inc., which appealed against the order of the Commissioner of Income Tax (Appeals)-XXIII, New Delhi, concerning the assessment year 2012-13. The primary contention of the appellant was the incorrect assessment of total income and miscalculation of various fees and reimbursements by the Assessing Officer. The appellant challenged the figures reported in the assessment, including the total income assessed and the amounts considered for survey fees. However, during the proceedings, the appellant's counsel admitted the lack of documentary evidence to support the claims made in the appeal. Consequently, the Tribunal found no basis to deviate from the findings of the lower authorities and dismissed the appeal.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 121602 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 06-12-2022
• Assessment Year: misc
• Appeal Filed On: 21-07-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 28

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D” DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.527/DEL/2018 Assessment Year 2012-13 Donaldson Company Inc., C/o Donaldson India Filter Systems Pvt. Ltd., Village Naharpur Kasan, PO-Nakhrola, Manesar, Gurgaon. Vs. Joint Commissioner of Income Tax, (OSD), International Taxation, Gurgaon. TAN/PAN: AABCD9700A (Appellant) (Respondent) Appellant by: Ms. Deepika Agarwal, Adv. Respondent by: Shri Sanjay Kumar, Sr.DR Date of hearing: 07 12 2022 Date of pronouncement: 07 12 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een fil ed b y th e Assessee ag ain st th e o rd er o f th e Co mmiss io n er o f In co me Tax (Ap p eals)-XXIII, New Delh i [‘CIT( A)’ in sh o rt] d a te d 2 1 .1 1 .2 01 7 arisi n g fro m th e assess men t o rd er d ated 2 0 .0 5 .20 16 p assed by th e Assessin g Officer (AO) u n der Sec tio n 1 4 3 (3 ) r.w. Se ct io n 1 4 4C(1 ) o f th e In co me Tax Ac t, 1 9 6 1 (th e Act) co n cern in g AY 2 01 2 -13. 2 . Th e g ro u nd s o f ap p eal ra ised b y th e assesse e read as u n d er: “ T h e f o l l o w i n g g r o u n d s o f a p p e a l a r e m u t u a l l y e x c l us i v e a n d w i t h o u t p r e j u d i c e t o e a c h a n o t h e r . 1 . T h a t o n t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , J o i n t C o m m i s s i o n e r o f I n c o m e - t a x ( O S D ) ( l n t e r n a t i o n a l t a x ), C i r c l e - G u r g a o n ( h e r e i n r e f e r r e d t o a s " L d . A O " )/ C o m m i s s i on e r o f I n c o m e T a x ( A p p e a l s ) - 2 3 , N e w D e l h i ( h e r e i n r e f e r r e d t o a s ` L d C I T ( A ) ) h a s I.T.A. No.527/Del/2018 2 g r o s s l y e r r e d i n d e t e r m i n i n g t h e t o t a l i n c o m e o f t he a p p e l l a n t c o m p a n y a t R s . 2 , 1 9 , 8 8 , 2 8 0 / - a s a g a i n s t t h e r e t u r n ed i n c o m e o f R s . 1 , 6 5 , 4 7 , 9 1 0 / - 2 . T h a t o n t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , L d . A O / C I T ( A ) h a s g r o s s l y e r r e d i n c o n s i d e r i n g t h e a m o u n t o f s u r v e y f e e a t R s . 9 , 3 9 , 1 9 2 i n s t e a d o f R s , 8 , 8 9 , 5 9 7 . I n d o i n g s o , t h e L d . A O / C I T ( A ) h a s d i s r e g a r d e d t h e s u b m i s s i o n o f t h e a p p e l l a n t w h e r e i n i t w a s s u b m i t t e d b y t h e a p p e l l a n t t h a t t h e a m o u n t o f f e e h a s b e e n e r r o n e o u s l y r e p o r t e d a s I N R 9 , 3 9 , 1 9 2 i n t h e F or m 3 C E B f i l e d f o r t h e s u b j e c t y e a r . 3 . T h a t o n f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , t h e L d . A O / C I T ( A ) h a s g r o s s l y e r r e d i n t a x i n g t h e a m o u nt o f s u r v e y f e e a m o u n t i n g t o R s . 8 , 8 9 , 5 9 7 t w i c e . 3 . 1 T h a t o n f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , L d . C I T ( A ) e r r e d i n n o t t a k i n g c o g n i z a n c e o f e v i d e n c e su b m i t t e d t o c e r t i f y t r a n s a c t i o n s b e t w e e n A p p e l l a n t a n d i t s A E s . 4 . T h a t o n t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , t h e L d . A O / C I T ( A ) h a s g r o s s l y e r r e d i n h o l d i n g t h e r e i m b u r s e m e n t s a m o u n t i n g t o R s . 4 5 , 5 0 , 7 7 3 a s F e e f o r T e c h n i c a l S e rv i e s . 4 . 1 T h a t o n f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e an d i n l a w , L d . C I T ( A ) e r r e d i n n o t c o n s i d e r i n g e v i d e n c e s u b m i t t e d t o c e r t i f y t h a t a m o u n t o f R s . 4 5 , 5 0 , 7 7 3 i s r e i m b u r s e m e n t . 4 . 2 Wi t h ou t p r e j u d i c e t o t h e a b o v e , t h e L d . A O / C I T ( A ) f a i l e d t o a p p r e c i a t e th a t e v e n w h e r e t h e a f o r e s a i d r e i m b u r s e m e n t s i n c l u d e a n y m a r k u p s , th e s a m e s h a l l n o t b e t a x a b l e i n I n d i a i n l i g h t o f b e n e f i c i a l p r o vi s i o n s p r o v i d e d u n d e r t h e I n d i a - U S D o u b l e T a x a t i o n A v o i d a n c e A g r e em e n t (` D T A A ' ). 5 . T h a t o n t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c as e a n d i n l a w , t h e L d . A O / C I T ( A ) h a s g r o s s l y e r r e d i n l e v y i n g t a x o n as s e s s e d i n c o m e a t r a t e o f 1 5 p e r c e n t a s p r e s c r i b e d u n d e r t h e I n d i a- U S D T A A i n s t e a d o f c o n s i d e r i n g b e n e f i c i a l r a t e o f 1 0 p e r c e nt a s p r e s c r i b e d u n d e r t h e p r o v i s i o n s o f t h e I n c o m e - t a x A c t , 1 9 6 1 . 6 . T h a t o n t h e f a c t s a n d t h e c i r c u m s t a n c e s o f t h e ca s e a n d i n l a w , t h e L d . A O h a s e r r e d i n i n i t i a t i n g p e n a l t y p r oc e e d i n g s u / s 2 7 1 ( 1 ) ( c ) o f t h e A c t , w i t h o u t c o n s i d e r i n g t h e f a c t t h a t t h e a p p e l l a n t h a d n e i t h e r c o n c e a l e d a n y p a r t i c u l a r s o f i n c o m e n o r f u r n i s h e d i n a c c u r a t e p a r t i c u l a r s o f i n c o m e . ” 3 . Wh en th e mat ter was cal led fo r h ea rin g , th e ld . co u n sel fo r th e assesse e, Ms . Deep ik a Ag arwal, Ad v . su b mit ted th at th e assesse e as p er i t s g ro un d s o f ap p eal h as ess en ti ally ch all en g ed th e a ll eg at io n o f misrep resen ta tio n o f tran sac tio n in fo r m 3 CE B & cla i m to ward s reimb u rsemen t o f ex p en ses. Oth er g ro und s are I.T.A. No.527/Del/2018 3 in cid en ta l to su ch ma jo r cla i ms. It w as su b mi tt ed ho wev er th at th e assesse e is n o t ab l e to lay h an d s o n th e d o cu men tary ev id en ces to su b stan tia te th e c h allen g es rai sed i n th e g rou n d s of ap p eal. In essen ce, th e ld . co u n sel th u s su b mitt ed th at sh e d oes no t h av e any d o cu men tary ev id en ce to co rrob o rate th e g riev an ces raised in th e g ro un d s. 4 . In th e ab sen ce o f an y do cu men tary ev id en ces, we are in no p o sitio n to ap p reci ate th e n u an ces o f g riev an ces raised o n b eh alf o f th e a ssesse e as p er its g ro u n d s of ap p ea l. Th e ld . co u n sel fo r th e ass essee h as a lso n o t p o in ted o u t th at th e v i ew ta k en b y th e CIT(A) is p erv erse o r co n trary to th e ad mit ted fa cts in an y man n er. Th u s, we are in n o p o sit io n to tak e a v i ew d ifferen t fro m th e v iew o f th e CIT(A). Hen ce, we d ecl in e to in t erfere. 5 . In th e resu l t, th e a p p eal o f th e asses s ee is d ismissed . Order pronounced in the open Court on 07/12/2022. Sd/- Sd/- [SAKTIJIT DEY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /12/2022 Prabhat